RE:RE:Q2 resultsThe CEO did mention that the 2nd quarter while very good was impacted by a sooner than usual rainy season that impacted their June results. While not providing guidance, he did mention that it ended sooner also and that August was booming and September should be even better. And their 4th quarter will be very good. The CFO even mentioned that 2021 is a spectacular year which is not the kind of adjective typically used by an accountant.
They seemed quite excited by Peru and Egypt. As to the stock price, well, no idea. No mention on rate increased but margin are keeping steady. MDI reported very good results in June only to see their stock price cut by 25%. SP
As Peter Lynch mentioned, the time to buy cyclical is when they have very high PE as it is before the start of a upcycle. One should sell when they have low PE as it is indicative of a market top and results that should decrease in the short or medium term. He does also mention that the more vicious and prolongated is a down cycle, the higher is the rebound.
So which one is it ? If I look at the almost non existent activity on this board and the other drillers (OGD, FAR and MDI), I would venture that we have not attracted a lot of interest from market participants. That should change as they keep on posting good results and they get discovered. In the meantime, gold and copper are at attractive levels, nothing indicates that it will go down and the market players are raising a lot of cash that will be spent on drilling. We should be in the first innings of a very good cycle so it is only a matter of time until GEO and the other drillers gets rerated.
So, back to waiting. OGD and MDI should report in September. This will give us more visibility but I would expect blow up quarters also as they have a major presence in North America which is leading the pack in the recovery. Lets see.
GLTA